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Once you own a home, you can use this program for fixup funds.

 Summary:

Under Title I, HUD insures lenders against most losses on home improvement loans.

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Purpose:

The Federal Housing Administration (FHA) makes it easier for consumers to obtain affordable home improvement loans by insuring loans made by private lenders to improve properties that meet certain requirements. “Lending institutions make loans from their own funds to eligible borrowers to finance these improvements.”

Type of Assistance:
The Title I program insures loans to finance the light or moderate rehabilitation of properties, as well as the construction of nonresidential buildings on the property. This program may be used to insure such loans for up to 20 years on either single- or multifamily properties. The maximum loan amount is $25,000 for improving a single-family home or for improving or building a nonresidential structure.

For improving a multifamily structure, the maximum loan amount is $12,000 per family unit, not to exceed a total of $60,000 for the structure. These are fixed-rate loans, for which lenders charge interest at market rates. The interest rates are not subsidized by HUD, although some communities participate in local housing rehabilitation programs that provide reduced-rate property improvement loans through Title I lenders.

FHA insures private lenders against the risk of default for up to 90 percent of any single loan. The annual premium for this insurance is $1 per $100 of the amount advanced; although this fee may be charged to the borrower separately, it is sometimes covered by a higher interest charge.

Eligible Lenders:
Only lenders approved by HUD specifically for this program can make loans covered by Title I insurance. Title I loans can be disbursed directly to the borrower or, if the loan is made through a dealer, the disbursement will be made jointly to the dealer and the borrower. While most lenders and dealers/contractors use this program responsibly, HUD urges consumers to use caution in choosing and supervising home repair dealers/contractors conducting Title I repair/renovation work.

Eligible Customers:
Eligible borrowers include the owner of the property to be improved, the person leasing the property (provided that the lease will extend at least 6 months beyond the date when the loan must be repaid), or someone purchasing the property under a land installment contract.

Eligible Activities:
Title I loans may be used to finance permanent property improvements that protect or improve the basic livability or utility of the property–including manufactured homes, single-family and multifamily homes, nonresidential structures, and the preservation of historic homes. The loans can also be used for fire safety equipment.

Application:
Applications must be submitted to a Title I approved lender. Search for a HUD-approved lender online.

Technical Guidance:
This program is authorized under Title I, Section 2, of the National Housing Act (12 U.S.C. 1703). Program regulations are in 24 CFR Part 201. The program is administered by HUD’s Office of Housing-Federal Housing Administration (FHA).

http://www.hud.gov/ll/code/llslcrit.cfm   check only Title 1 Lenders to find your local lenders. Expand the search area if you don’t find one close by.

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Flipping Handyman-Specials and Fixer-Uppers

This program covers the costs of buying the home as well as rehab costs.

The purchase of a house that needs repair is often a catch-22 situation, because the bank won’t lend the money to buy the house until the repairs are complete, and the repairs can’t be done until the house has been purchased.

HUD’s 203(k) program can help you with this quagmire and allow you to purchase or refinance a property plus include in the loan the cost of making the repairs and improvements. The FHA insured 203(k) loan is provided through approved mortgage lenders nationwide. It is available to persons wanting to occupy the home.

The downpayment requirement for an owner-occupant (or a nonprofit organization or government agency) is approximately 3% of the acquisition and repair costs of the property.

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The 203(k) loan includes the following steps:

  A potential homebuyer locates a fixer-upper
and executes a sales contract after doing
a feasibility analysis of the property with their
real estate professional. The contract should
state that the buyer is seeking a 203(k) loan
and that the contract is contingent on loan
approval based on additional required repairs by the FHA or the lender.
  The homebuyer then selects an FHA-approved 203(k) lender and arranges for a detailed proposal showing the scope of work to be done, including a detailed cost estimate on each repair or improvement of the project.
  The appraisal is performed to determine the value of the property after renovation.
  If the borrower passes the lender’s credit-worthiness test, the loan closes for an amount that will cover the purchase or refinance cost of the property, the remodeling costs and the allowable closing costs. The amount of the loan will also include a contingency reserve of 10% to 20% of the total remodeling costs and is used to cover any extra work not included in the original proposal.
  At closing, the seller of the property is paid off and the remaining funds are put in an escrow account to pay for the repairs and improvements during the rehabilitation period.
  The mortgage payments and remodeling begin after the loan closes. The borrower can decide to have up to six mortgage payments (PITI) put into the cost of rehabilitation if the property is not going to be occupied during construction, but it cannot exceed the length of time it is estimated to complete the rehab.
  Escrowed funds are released to the contractor during construction through a series of draw requests for completed work. To ensure completion of the job, 10% of each draw is held back; this money is paid after the lender determines their will be no liens on the property.

http://www.hud.gov/ll/code/llslcrit.cfm   check only Title 2 Lenders to find your local lenders.

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This is the standard Affidavit of Heirship form used in Texas. Just fill in the blanks and have two disinterested parties and one interested party sign it before a notary, then file it at the county clerk’s office.   DOWNLOAD WORD DOC

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We had a great day on releasing the book “How to Flip Property You Don’t Own” today. It ended the day at the Number 2 Best Seller position in Kindle Books and the Number 20 Best Seller in Amazon’s Regular Books. I want to thank everyone and my wish is that you will use the techniques to start flipping property in your local area.  Again, Thanks -John Alexander

Best Seller Rank2

 

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Creating events in our life is one of the best ways to start using Mind Programming techniques. To give you a feel for what this is like, imagine you flip a coin. Before it lands you have no way of creating the results of heads or tails. It is outside your powers of creation to make it land on your desired result. In the next example, you hold a small rubber ball and you drop it from should height. You know what will happen next. It will fall and bounce off the floor. You know this even before you release the ball. You even know about how high it should bounce even though you may have never dropped this particular size rubber ball. This is living a life where you create the events. You know the outcomes or at least the likely outcome.

Now let’s look back at the coin flip. This is the way most people lead their daily life. They let other causes create their reality, their daily events. They get up, turn on the Television or Radio and let the speaker start creating events for them. They may go into work and let events happen and spend all their time reacting to each event, always just behind the event. They don’t have to think; they are receiving input, but not creating output. The only output happening here is a response output. They are reacting to the stimulus. This is the lowest level of existence.

In the world of bacteria, this tiny animal moves when other bacteria bumps it; or it moves toward its food source, nothing else is happening in their world. It automatically has the same repetitive responses to each of its common daily stimuli. It’s a basic mode of living, it’s the easiest way to go from one moment to the next. But it offers hardship, it eats you alive because you aren’t producing, growing. It’s nature’s way of killing off what isn’t contributing to the universal progress of creation. If you aren’t creating… actively creating with a purpose and using deep thought processes, you are being attacked by the universe as it tries to kill you off. We see whole countries of people with little education being killed off by the universe with something as preventable as malaria, or germs in water. This is Natural Selection at work, millions dying off the planet yearly. When any life form doesn’t evolve, it is destroyed by default in the evolutionary process. That’s the way it must be since the universe never stops progressing forward on a creative projection, eliminating anything that isn’t helping toward that purpose.

This shows us the first thing we should be doing in creating our daily world the way we want it to be. We must plan it out using predictable actions designed to bring the next step of created form into existence. We avoid as much as possible, the coin flip action and concentrate on the ball dropping means of actions to complete each day. By doing nothing, the coin flip is in play, fate plays out. By acting, the ball drop is in play; you’re in control of creating actions that progress you, your life, your family, your group. This means writing out what we want to happen or what we want to have, then working backwards as to how we set into creation a set of events designed to create the goal/event. Each event leads to the HAVE or the HAPPENING we wish to experience. Find out more on creating your own success or reality in my book “Millionaire Mind Programming”. Available at Amazon.com. Author John Alexander